Big Taxes and Big Spending Cuts Give California a Budget Surplus

After multi-billion dollar shortfalls in recent years, the state’s budget has finally straightened out. California expects to take in $2.4 billion more in revenue than it will spend this fiscal year, which ends June 30. After paying off a shortfall from last year and setting aside funds for upcoming obligations, it’s on track to end the year with a $36 million surplus.

If the legislature approves Governor Jerry Brown’s 2013-14 budget proposal, California should have enough money next year to increase funding for education and pay down debt, while setting aside $1 billion in a reserve fund.

“For the next four years, we’re talking about a balanced budget. We’re talking about living within our means,” Brown said last month when he unveiled his budget. “This is new. This is a breakthrough.”